RBS & VERIFONE

RBS WorldPay has inked a deal to market VeriFone’s “VeriShield Protect”
end-to-end solution for encrypting payment card data. The VeriFone
solution uses AES-level encryption that preserves existing card track
data formats so it works transparently with retailers’ existing payment
infrastructure. Because “VeriShield Protect” preserves the format of the
card data there is no need to redesign the POS applications to deal with
a new data format. In addition to encrypting card data, “VeriShield
Protect” monitors all systems in real time at the device level via
“VeriShield Secure Device Management Service,” so if a breach occurred
the retailer would be immediately alerted. In addition, data encryption
keys can be managed remotely as part of the device management service.

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Fiserv & Aspen Release an EBPP Study

Fiserv,has released the results of a new study that reveals the
positive impact of electronic billing and payment on customer
satisfaction, retention and profitability. The study
evaluated data from 8 million Qwest Communications residential customers
over an 18-month period, with analysis concluded in April 2009. The
analysis found the most significant linkage between billing and business
benefits among early tenure customers, those who had been customers for
less than 28 months. The study also revealed that customers who receive paperless electronic
bills at a company website or at a financial institution website, or who
use recurring payments, are more profitable for the billing
organization. Among early-tenure customers, e-bill users are 12.5% less likely to leave,
are 35% more likely to pay their bills on time, and purchase 20% more products than paper bill users; automatic,
recurring payment users are 14% less likely to leave
and 86% more likely to pay their bills on time with 74% of customers who receive an e-bill at a bank site pay using
a deduction from their bank account, a low-cost form of payment and 40% of customers who receive bills at the company site pay
using a card-funded payment, a higher cost method of payment.

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ARGW & NEXO

AR Growth Finance has completed a series of
transactions which have eliminated its interest in ProBenefit and have
allowed for the purchase of an interest in the Argentine consumer credit card
company, Nexo Emprendimientos. ARGW had purchased a 95% interest in the financial services holding company
ProBenefit in 2007. ProBenefit had at the time a pension management
company, an insurance company and had started Nexo.
In December of 2008, the Government of Argentina nationalized the pension asset management
business conducted in Argentina and thus the business of ProBenefit was
no longer the growth business that ARGW had planned on. As a result, ARGW decided
to focus solely on the high growth business of Nexo and divest itself of all the
other businesses of ProBenefit. ARGW will initially have a 15%
common stock interest in Nexo with an option to acquire an additional 58%, which
would give ARGW a 73% interest in Nexo.

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Third Party Processing Market to Grow 57% by 2013

A new study on third party processing finds that the market grew by
11% last year, to reach $61.9 billion, and is poised to jump 57% through
2013. The report says that seeking to offset the impact of lower
employment figures in the payroll space and reductions in consumer use
of credit in the payment space, third party processors continue to bank
on the ongoing move from paper to electronic processing. The Packaged
Facts study also found that major TPPs are also promoting new
technologies to give their businesses a boost, working to increase
revenues from existing clients and tapping into related growth areas
such as human resources outsourcing and mobile transactions. The report
focuses on three key segments — electronic payment processing, payroll
processing, and healthcare transaction processing. Third party
processors are outside organizations that process and manage
transactions between sellers and buyers.

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EGG MASTERCARD

First Data reported that revenues for the second quarter were flat at $2.21 billion and adjusted earnings were $607 million, down 5% from the year ago quarter. The net loss for the quarter rose 22% from 2Q/08 to $195.9 million. Retail and Alliance Services reported revenue of $1.3 billion, up 8%. Financial Services revenue was $532 million, down 4%. International generated revenue of $404 million, down 13%. During the quarter FDC formed a new alliance with Bank of America Merchant Services, which will process more than one billion transactions per month. Also, FDC and PNC Bank extended their merchant alliance for an additional eight years; Wells Fargo expanded its agreement for card processing services; and the Company announced plans to move its headquarters to Atlanta. FDC noted that 33 new ISOs, 11 new referral partners and one new RSA were added to the Retail and Alliance Services distribution network; Financial Services renewed 68 contracts in the quarter; and International transactions grew 7%. For complete details on First Data’s second quarter performance visit CardData (www.carddata.com).

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100K Free Getfugu Cards on 9/9/9

Mobile search tool provider Getfugu will give out 100,000 customizable, VISA branded debit cards.
GetFugu.com cardholders will be able to click on to a micro-website for
access to the features offered, as well as the cardholder system
dashboard to manage their accounts. The site will also include both
video and spokesperson presentations. Because Getfugu recognizes the
importance and power of individuality, at activation, the cardholder may
personalize their card with their own photos. Getfugu’s 09/09/09 premiere of its four unique “See It,” vision
recognition (ARL); “Say It,” voice recognition (VRL); “Find It,”
location recognition (GRL); and “Get It,” Hot-Spotting services, is
targeted at consumers who spend valuable time hunting for entertainment,
news, sport results, shopping, and more on their mobile phones. Getfugu
offers ease of operation and direct connection to the Internet without
tedious typing in of URL addresses for commercial transactions.

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MONTISE & PAYNET

Monitise mobile banking services has signed a joint venture agreement
with Paynet electronics payment company. With the regional mobile phone
penetration nearing 50% of the consumer population, this partnership
will allow Monitise to extend its business further into Africa and the
Middle East to offer millions access to m-banking and financial
services. This thanks to Paynet’s well-established electronic payment
network in Kenya, Tanzania and Uganda that connects to 35 regional
financial institutions. In addition to providing traditional mobile
banking to bank account holders, Monitise also enables people without a
bank account to use its services with technology that works across all
generations of mobile phone platforms.

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JUNE DEBT

Annual growth in credit card outstandings continued to slow in June, growing at an annual rate of 1.0%, compared to 1.3% in May and 7.3% one-year ago. Credit limits are also decelerating, growing 1.7% in June, compared to 2.4% in the prior month and 4.6% in June 2008. According to the Reserve Bank of New Zealand, credit card outstandings were NZ$5.18 billion in June, compared to NZ$5.10 billion one-year ago. Credit limits hit NZ$17.6 billion. Credit card volume for June was NZ$2.2 billion, more than 2% below the same month last year. The average interest rate charged on a credit card account in June was 18.4%, compared to 20.2% one-year ago.

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Coinstar to Distribute nFinanSe Cards

Prepaid card provider nFinanSe has signed an agreement with Coinstar
E-Payment Services to distribute nFinanSe’s reloadable cards
for Coinstar’s “Pay as You Go” Solution. nFinanSe’s Reloadable Prepaid
Cards feature a $3 purchase price, a $2.95 monthly and reload fees, free
direct deposit of payroll with no hidden transaction fees and no fees on
purchases. The cards are reloadable at over 80,000 nFinanSe Network
nationwide locations with “Free… of course!” Live Customer Service
available 24 hours a day, 7 days a week in English and Spanish.
Purchase and available balance information is sent to cardholder’s cell
phone and/or email address after each transaction and there is mobile
couponing through RocketBux. Coinstar’s “Pay As You Go” solution
featuring national and regional prepaid wireless programs, long distance
cards, gift cards, digital
entertainment products and one of the industry’s largest portfolios of
financial services. Coinstar’s products and services can be found at
select retail locations nationwide.

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New Study Shows the Positive Impact of EBPP

EBPP IMPACT
A new study has found that customers who receive paperless electronic
bills at a company website or at a financial institution website, or who
use recurring payments, are more profitable for the billing
organization. The study also validated the importance of delivering
e-bills not only via an organization’s own website, but also via
financial institution sites, because where a bill is received impacts
payment method. Conducted by Aspen Marketing Services on behalf of
Fiserv, the research reveals e-bill users are 12.5% less likely to
leave, are 35% more likely to pay their bills on time, and purchase 20%
more products than paper bill users. Automatic, recurring payment users
are 14% less likely to leave and 86% more likely to pay their bills on
time. Among the customers studied 74% who receive an e-bill at a bank
site pay using a deduction from their bank account and 40% of customers
who receive bills at the company site pay using a card-funded payment, a
higher cost method of payment.

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ADS and Charming Shoppes Ink a Store Card Deal

Charming Shoppes has signed a deal to sell its private label credit card receivables to Alliance Data Systems. The two companies also signed a ten-year operating agreement for the servicing of the Charming Shoppes’ cards. The deal covers the operation of the Lane Bryant, Fashion Bug and Catherines credit card programs. Charming operates its private label credit card program in-house. There are currently 4.5 million active accounts generating $680 million in annual sales volume and carrying $500 million in outstandings. Charming says the cards represent 32% of its retail stores nets sales for the trailing 12 months. Charming operates women’s apparel brands including Lane Bryant, Lane Bryant Outlet, Fashion Bug and Catherines Plus Sizes, and posts annual sales of more than $2 billion with 2,258 retail stores nationwide. Gross proceeds from the transaction are estimated at $140 million with $110 million net to Charming. ADS plans to maintain and operate Charming Shoppes’ existing Milford, OH card support facility. The deal is expected to close by the end of the year.

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